S&P, the rating agency, has just given Greece a standing ovation for its incredible economic turnaround. For the first time since 2010, they’ve upgraded Greece’s credit rating to investment grade, and let me tell you, that’s a big deal.
A Leap Forward in Credit Rating
S&P has officially moved Greece from the speculative zone to investment territory. They’ve upped the credit rating for both long- and short-term local and foreign currency sovereign credit. This is major news and could have a profound impact on Greece’s financial future.
“Significant Progress” Recognized
So, what’s behind this turnaround? Well, according to S&P, it’s all about the “significant progress” Greece has made in dealing with its economic challenges. Remember those tough times during the debt crisis from 2009 to 2015? Well, it seems like Greece has come a long way since then.
Budgetary Consolidation Efforts Pay Off
S&P’s announcement pointed out that Greece’s public finances are on the upswing, thanks to some serious budgetary consolidation efforts. The government’s dedication to getting things back on track is finally paying off.
S&P isn’t just patting Greece on the back for its past accomplishments; they’re looking forward too. They’re expecting the government to achieve a primary surplus of at least 1.2 percent of GDP this year, which is well above the target. And the good news doesn’t stop there. They anticipate this surplus growing to 2.3 percent of GDP over the next three years.
The Power of Leadership
The general election earlier this year played a pivotal role in this positive outlook. It returned Kyriakos Mitsotakis to power, and according to S&P, this is great news. Mitsotakis’s return allows the government to keep building upon the past reform efforts, which will help make Greece more competitive on the international stage.
A Bright Future
S&P believes that Greece’s journey is far from over. They’re foreseeing more structural economic and budgetary reforms on the horizon. Plus, with a helping hand from large EU funds, the country’s economy is set to experience robust growth from 2023 to 2026. This growth will be instrumental in reducing government debt even further.
So, there you have it! Greece’s credit rating is on the rise, and it’s a testament to the country’s unwavering commitment to progress.
© Agence France-Presse